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OnLive purchased by 'unknown party', 50% of staff cut - report [Updated]

Firm undergoes "across the board cuts" as takeover looms, says former employee

A now laid-off OnLive employee has revealed that the cloud gaming company has been purchased by an 'unknown party'.

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Citing the anonymous insider, Engadget reports that the mass of layoffs today have affected around 50 per cent of staff, which comes as the firm makes "across the board cuts", adding that no severance will be offered and "stock holdings are essentially worth nothing".

According to the site, "Those being kept on have reportedly received offer letters from the new company,".

The source suggested that the firm's huge operating costs - apparently around $5 million a month - are partly to blame for the sudden and surprising move.

Despite today's events, OnLive's director of corporate communications Brian Jaquet remains tight lipped with several 'no comment' responses, while telling Forbes, "We are not going out of business."

CVG has again reached out to OnLive for response on the latest reports.

Update: TechCrunch corroborates the report, citing 'a reliable source' as saying that CEO Steve Perlman has found a buyer, and the party "wants all of OnLive's assets - the intellectual property, branding, and likely patents". The site's source suggests that the cuts were made "to reduce the company's liability" as the takeover goes through.

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